An existing asset is demolished for building a new asset.
What is the accounting treatment of the demolition charges which is in lakhs?
2 Replies
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 05 January 2018
Under Repairs and Maintenance....
satish
(teaching)
(2046 Points)
Replied 05 January 2018
As per AS 10, demolishing of old building will cover under the meaning of site preparation cost. so it can be capitalise.
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